RARA ELECTRONICS COMPANY-Introduction

THE CEO's MESSAGE AND BUSINESS PROFILE

This year, 2009, marks RARA's twenty-first year of business. With a combined effort from all the RARA teams and our international agents, we have made solid, steady progress as a high power resistor manufacturer. This year presents many challenges to the electronics industry and, indeed, to all industries. We will do our best to help our agents and buyers weather this storm.

Through our network of licensed agents, RARA is already exporting to Japan, the USA, Australia, Russia and Europe. In total, RARA has approximately eighty customers in forty countries. To understand how RARA has grown so fast, in a highly competitive global marketplace, you must understand our business practices. We are committed to: the production of high quality products, an ongoing R&D program, unparalleled customer service, a conscientious attitude toward our environment and a positive workplace for our employees.

RARA will continue to offer state-of-the-art products at reasonable costs and maintain it’s program of product development to best suit our customers. RARA’s newly recognized R&D center provides custom design service and technical support.

Recently we are trying to develop new markets for precision resistors, power film resistors and RF resistors. RARA would like to give customers a “ONE-STOP SOLUTION” with all kinds of special resistors.

With best regards,

Mr. Sang Gon Kim, President

March 1^st, 2009

BUSINESS PROFILE

RARA Electronics Company was established on January 20th, 1989 in Bucheon, South Korea.
The company was started by Y. C. Kim, the president, and his son S. G. Kim, a graduate from
Ah-Ju University with a B.Eng. in electronics engineering. The original production facility was
the rented second floor of a commercial building. As of April 6th, 2000 the legal designation
of RARA changed to corporate form. The initial capital was five hundred million won.

Capital:
As of December 31st, 2007 the capital was 1.356 billion won.

Staff:
RARA currently employs thirty-five people, comprising fifteen production line workers
and six managerial staff, four QA and two R&D specialists.

Products:
RARA's main products fall into ten main groups:
1/          High power, metal clad, wire wound
2/          Current sensing
3/          Precision
4/          Power film
5/          RF
6/          High voltage
7/          Potentiometers
8/          Inductors
9/          Protectors
10/        Heaters

Sales:
Total sales for 2008:
-domestic: KRW2,580,000,000
-foreign: USD1,330,000

Patents:
RARA’s research and development activities have resulted in
fourteen patents for design and two patents for practical applications
from the Korean government’s Office of Patents.

Reference Bank:
The Industrial Bank of Korea,
Yon-Su Branch, Incheon,
South Korea.
Account No.: 381-011672-01-014
Depositor: RARA Electronics Corporation
Swift Code: IBKO KRSE

Mailing Address:
RARA Electronics Corporation
(100BL-11L) 666-19 Kojan-dong, Namdong-gu
Incheon, Korea 405 310
Tel.: 82-32-817-4325
Fax. 82-32-817-4329